PVS KEEP AUTO SECTOR FIRING IN FY24 POST 12.5% GROWTH, SALES OF 42 LAKH UNITS

On the backdrop of a robust economic growth of 7.6 per cent the Indian automobile industry posted a satisfactory growth of 12.5 per cent during financial year 202324, with passenger vehicle segment leading the growth with overall sales touching almost 5 million units even as the industry remains optimistic amidst positive macroeconomic outlook.

- NIVEDITA MUKHERJEE

The PV dispatches growth includes a growth of 8.4 per cent in the India market taking the sales to 4.2 million and 0.7 million exports, the Society of Indian Automobile Manufacturers (SIAM) said on Friday, releasing the auto industry sales performance of the last month, the fourth quarter ended March and financial year 2023-24. Passenger Vehicle registered growth of 12 per cent in Q4.

Nomura Ratings in its outlook for the sector in FY25F, expects rebalancing of growth where high-growth segments like PV/MHCV will see a slowdown while mass segments like 2Ws will see some recovery. “The PV industry inventory levels remain elevated, and we expect growth to moderate to 4 per cent yoy in FY25 from 8 per cent yoy in FY24. In 2Ws, rural recovery should support demand and drive 10 per cent growth in FY25,” say Nomura auto analysts Kapil Singh and Siddhartha Bera.